McDonald's Corp. v. Austin Mut. Ins. Co.

McDonald's Corp. v. Austin Mut. Ins. Co.

Opinion

 [*348]  ORDER

Before the Court is Defendant Austin Mutual Insurance Company's ("Austin Mutual") Motion to Dismiss Plaintiffs' Complaint under Federal Rule of Civil Procedure 12(b)(6). For the following reasons, the Court denies Austin Mutual's Motion.

STATEMENT

In this insurance coverage dispute, Plaintiffs McDonald's Corporation, McDonald's USA [**3]  LLC, and McDonald's franchise owners Lexi Management LLC and DAK4, LLC (collectively, "Plaintiffs") argue that Austin Mutual has a duty to defend Plaintiffs under identical commercial general liability insurance ("CGL") policies (the "Policies").

Plaintiffs argue that Austin Mutual has failed to defend Plaintiffs in the Circuit Court of Cook County case Taynarvis Massey, et al. v. McDonald's Corporation, et al., Case No. 2020 CH 04247 (the "Massey suit"). The Massey suit alleges that Plaintiffs are liable for public nuisance and negligence in their decision to remain open during the COVID-19 pandemic without enhanced health and safety standards. The Massey plaintiffs specifically seek a mandatory injunction requiring Plaintiffs to, among other things: (1) provide their employees with adequate personal protective equipment; (2) preclude the reuse of face masks; (3) supply hand sanitizer; (4) require that customers wear face masks; (5) monitor employee COVID-19 infections; and (6) provide Plaintiffs' employees with accurate information about COVID-19.

The Policies defining Austin Mutual's duty provide that Austin Mutual:

will pay those sums that the insured becomes legally obligated to [**4]  pay as damages because of "bodily injury" ... to which this insurance applies. [Austin Mutual] will have the right and duty to defend the insured against any "suit" seeking those damages. However, [Austin Mutual] will have no duty to defend the insured against any "suit" seeking damages for "bodily injury" ... to which this insurance does not apply.

Dkt. #1-1 at 54; Dkt. #1-2 at 72. (emphasis added). The Policies further provide that the "bodily injury" must be caused by an "occurrence" that takes place in the "coverage territory." Id. The Policies define "bodily injury" as "bodily injury, sickness, disease or mental anguish sustained by a person, including death resulting from any of these at any time." Dkt. #1-1 at 80; Dkt #1-2 at 98. The Policies also define the term "occurrence" as "an accident, including continuous or repeated exposure to substantially the same general harmful conditions." Dkt. #1-1 at 17.

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